Requirements for obtaining an exemption from capital gains tax under the proviso of Article 62 (1) of the Regulation of Tax Reduction and Exemption Act.

In order to obtain an exemption from the transfer income tax under the proviso of Article 62 (1) of the Regulation of Tax Reduction and Exemption Act, the transferee of land who is a housing construction registration businessman shall apply for the exemption from the tax within the period of tax base return in the taxable year

Article 62 of the Regulation of Tax Reduction and Exemption Act, Article 50 of the Enforcement Decree of the Regulation of Tax Exemption

Kim Ho-ho

The director of the tax office.

1. The plaintiff's claim is dismissed.

2. Litigation costs shall be borne by the plaintiff.

The Defendant’s disposition of imposition of capital gains tax of KRW 158,637,210 and defense tax of KRW 21,727,440 against the Plaintiff on June 20, 1986 shall be revoked.

The judgment that the lawsuit costs shall be borne by the defendant

On July 1, 1983, the Plaintiff transferred part of 1,270 miscellaneous land of 614-2 and 8 miscellaneous land in Guro-gu, Seoul, Guro-gu, and 614-2 and 8 miscellaneous land (this case’s land) of the Plaintiff’s possession to the non-party corporation, but did not pay the tax base and tax amount of capital gains tax. The Defendant’s transfer value is KRW 456,840,00, the actual transaction value; the acquisition value is KRW 71,381,250, the amount determined by the standard market price pursuant to the proviso of Article 170(1) and (4)1 of the Enforcement Decree of the Income Tax Act; and the transfer price is KRW 71,381,250, Jun. 20, 1986.

The plaintiff transferred the land of this case to the above non-party company, a housing construction certificater under Article 6 of the Housing Construction Promotion Act, and the above non-party company newly constructed the house on the land of this case within 3 years under Article 62 (1) of the Regulation of Tax Reduction and Exemption Act and Article 50 (2) of the Enforcement Decree of the same Act. Thus, the plaintiff's transfer of the land of this case to the above non-party company shall be subject to tax exemption under the proviso of Article 62 (1) of the same Act, so the disposition

In full view of the proviso of Article 62(1) of the Regulation of Tax Reduction and Exemption Act, and Article 50(2) and (3) of the Enforcement Decree of the same Act, the Plaintiff’s assertion that a national transfers his land to a housing construction business operator registered pursuant to Article 6 of the Housing Construction Promotion Act (hereinafter referred to as a “housing constructor”) and where a registered housing constructor who acquired it constructs a house smaller than national housing scale under the Housing Construction Promotion Act within 3 years is exempted from capital gains tax on income accruing from the transfer of the relevant land. However, pursuant to the proviso of Article 62(3) of the Regulation of Tax Reduction and Exemption Act and Article 50(10) of the Enforcement Decree of the same Act, the transferee of the land who wishes to be exempted from capital gains tax pursuant to the proviso of Article 62(1) of the same Act shall file an application for capital gains tax exemption within the tax base return for the taxable year to which the date of transfer of the relevant land belongs, and may not be exempted if the said application for exemption is not filed. Furthermore, the Plaintiff

Therefore, the plaintiff's claim of this case is without merit, and it is dismissed, and the costs of lawsuit are assessed against the plaintiff who has lost. It is so decided as per Disposition.

Judges Lee Jong-sik (Presiding Judge)